Binance Sparks Yet Another Crypto Market Selloff During September

Binance Announces Changes to Zero-Fee Bitcoin Trading

Crypto exchange Binance has made an official announcement on August 24th regarding updates to its zero-fee Bitcoin trading, effective from September 7th. These changes specifically pertain to the BTC/TUSD spot and margin trading pair.

Previously, users enjoyed the benefit of zero maker and taker fees when engaging in BTC trading with TUSD pairs. However, under the new framework, a standard taker fee will be applicable based on the user’s VIP level. Despite this adjustment, users will still retain the privilege of zero maker fees when participating in Bitcoin trading through the BTC/TUSD spot and margin trading pair.

“The trading volume generated from activities within the BTC/TUSD spot and margin trading pair will contribute to the calculation of the user’s VIP tier. This will also apply to all Liquidity Provider programs. Additionally, the reinstatement of BNB discounts, referral rebates, and any other fee-related modifications will be applicable to BTC/TUSD spot and margin trading volumes.”

Transition from Zero-Fee Trading and Impact on TUSD

Binance’s decision to end the zero-fee Bitcoin trading program for TUSD has implications for its support of the True USD (TUSD) stablecoin. Despite this change, users will retain the privilege of zero maker and taker fees while engaging in Bitcoin trading using the FDUSD spot and margin trading pair.

Impact on the Crypto Market

Binance’s recent adjustments have inadvertently led to another market selloff event. The modification of the zero-fee Bitcoin trading program for the BTC/TUSD spot and margin trading pair has triggered significant consequences.

According to data from CoinMarketCap, the BTC/TUSD and BTC/USDT pairs are among the most traded pairs for Bitcoin, accounting for 11% and 7% of the total trading volume, respectively. The decision to discontinue BUSD support in favor of TUSD as the sole trading pair for zero-fee Bitcoin trading resulted in a notable decrease in trading volume for Tether (USDT) pairs.

Ironically, Binance is now shifting its focus from the widely traded TUSD to the lesser-known FDUSD stablecoin, which doesn’t even rank among the top 10 Bitcoin pairs in terms of trading volume. This strategic shift is expected to lead to a further decline in trading volumes, exerting additional pressure on the market. Currently, FDUSD has a market capitalization of just $324 million.